Okay, Here's The Deal With The AOL-Huffington Post Deal...http://www.businessinsider.com/aol-huffington-post-deal-2011-2/comments
en-usWed, 31 Dec 1969 19:00:00 -0500Fri, 09 Dec 2016 10:27:05 -0500Henry Blodgethttp://www.businessinsider.com/c/4d5165cccadcbb8626060000AndrewBGoldbergTue, 08 Feb 2011 10:48:27 -0500http://www.businessinsider.com/c/4d5165cccadcbb8626060000
Henry, when you look at the deal strategically and objectively, as you've done, it makes sense for both sides. And I agree strongly with your last comment, that "winning" will still require a series of executional wins. In particular, I think that Aol needs to cultivate its niche by continuing to grow its video impressions.
Both Tim and Arianna have said that see video as a top priority, and in his letter to employees yesterday, Armstrong shared that video consumption has increased 400% Y/Y. But if Aol doesn't continue to grow its share of video advertising, and/or if they are unsuccessful in attracting more brand dollars to digital, then none of Aol's recent efforts will matter. But hey, with a growing stable of strong, indepedent brands, at least Aol will have something to sell off if it comes to that!
http://bit.ly/fJn1J9http://www.businessinsider.com/c/4d50b73eccd1d55e2b010000skwilaxMon, 07 Feb 2011 22:23:42 -0500http://www.businessinsider.com/c/4d50b73eccd1d55e2b010000
At last, an apolitical article! Where can I find this "12 Things Woman Are Doing With Their Vaginas"?http://www.businessinsider.com/c/4d507fd6ccd1d5ec23010000dwightbakerMon, 07 Feb 2011 18:27:17 -0500http://www.businessinsider.com/c/4d507fd6ccd1d5ec23010000
Gold Diggers Golden parachute finally arrived!
By Dwight Baker
February 7, 2011
Dbaker007@stx.rr.com
Once more the big fish are eating the small ones hoping that they might contain nutrients needed to stave off starvation.
Well good luck AOL buying this ‘ Pig in the poke’. The hot shot sales and marketing guy put together this scheme so that Arianna can finally lay down again and start doing her real thing. Gold digging is far more easy than trying to make sense out of non-sense for which she has been doing since migrating to our Rich and Abundant America. Thus, How does a ‘ Thief talk about how bad it is to be a thief’?
The glow and allure behind the lost cause to inform the ‘American dumb down people of what to do next and how’, has finally come to find its final resting place. For that AOL you have got a hard road ahead filled with bumps in a rocky strewn pathetic path. For those many that have logged onto Ariannas Huff????? Will leave as FAST as they have all arrived. Then AOL will be out in the cold once more trying to fight off the bigger fish that wants to eat them quickly in trying to stay alive.
For one thing most of us can attest is that the progressive media moguls are dying on the vine. They once were thought to provide substance for our needs to help us save our nation. But NOW! Most of us with a low hi-brow have realized that they too were in this uphill thought to be a ‘hard charge’ was there to just to MAKE MORE MONEY!
Thus Americas number one ‘Gold Digger has her Golden Parachute’ once more, SO what will she do? I hope she goes back from whence she came.http://www.businessinsider.com/c/4d50525d49e2ae9929010000Former Huff Post readerMon, 07 Feb 2011 15:13:16 -0500http://www.businessinsider.com/c/4d50525d49e2ae9929010000
RIP Huff post...i deleted you from my bookmarks!http://www.businessinsider.com/c/4d504fa84bd7c8eb1e030000The aggregatorMon, 07 Feb 2011 15:01:44 -0500http://www.businessinsider.com/c/4d504fa84bd7c8eb1e030000
I agree with your point from a political standpoint.
But if you look at to today's economic trends, the move makes sense for AOL. They are an internet services company and by adding an online newspaper to that repertoire, they could be very successful because of how everything is coming online. People are slowly stopping to read newspapers in person because its much easier online. Hundreds of millions of people (globally) are connected to the internet (whether by their phones, their laptops, their tablets, or their desktops).
Plus, this would give AOL (if it wanted to) the possibility of creating an app (for phones (like iOS, android, windows, webOS) and tablets) with the internet services it has acquired (in this case the HuffingtonPost) and make a lot of money from that.
Once again, just to emphasize, with our world focused on the internet and apps (that are very popular and profitable and connected to the internet) adding a service like the Huffington doesn't seem like such a bad idea.http://www.businessinsider.com/c/4d504bb1cadcbb7f490a0000ex-aolerMon, 07 Feb 2011 14:44:49 -0500http://www.businessinsider.com/c/4d504bb1cadcbb7f490a0000
AOL phones are currently ringing off the hook with angry, conservative, dial-up subs bitching about this. I know this to be true. Not sure if it means squat in the grand scheme of things, but it pisses a lot of people off.http://www.businessinsider.com/c/4d5047eaccd1d59217180000peter wMon, 07 Feb 2011 14:28:41 -0500http://www.businessinsider.com/c/4d5047eaccd1d59217180000
that wasn't nice. why do you have to personally attack someone who has a different point of view?http://www.businessinsider.com/c/4d50470b4bd7c8d714020000FredZMon, 07 Feb 2011 14:24:59 -0500http://www.businessinsider.com/c/4d50470b4bd7c8d714020000
As far as AOL/HP adopting a leftest agenda, I think Fox News proves the business model of activist news. With CNN struggling as neutral news (save me the lame stream media comments), AOL/HP becoming a major left leaning news conglomeration make some sense. Once AOL dial up business totally expires, I could see them becoming an acquisition target from a larger media company, something not lost on Tim.http://www.businessinsider.com/c/4d50451dcadcbbad3e130000FredZMon, 07 Feb 2011 14:16:45 -0500http://www.businessinsider.com/c/4d50451dcadcbbad3e130000
HP "moved" slightly to the center only because Dems (Obama in particular) are in power and have governed center left (regardless of the right wing hyperbole). If, fate forbid, the GOP took power HP would be back to "normal".
As far as AOL/HP adopting a leftest agenda, I think Fox News proves thhttp://www.businessinsider.com/c/4d504518ccd1d536171a0000Eliot SpitzerMon, 07 Feb 2011 14:16:40 -0500http://www.businessinsider.com/c/4d504518ccd1d536171a0000
Let's be practical about this.
1. This was all about the investors getting their money out of a one-trick blog that cannot scale beyond their core audience. The Left loves HuffPo for the same reasons the Right loves Fox. Both preach to their respective choirs and reinforce the core beliefs of the converted.
2. Eric Hippeau stepped down from Yahoo's BOD, another dying portal. Obviously, he couldn't swing a deal there, or with NBC, so who else would buy HuffPo: AOL. Armstrong is hanging on by his fingernails and this deal is high-profile with the press that loves HuffPo. It gives Timmy street cred, even if the business is small in actual annual sales.
3. Given Timmy's edicts about page views, he needs a lot more than HuffPo to hit those targets. Further, those folks who write for HuffPo, for free at this time will want money and will not go along with the page view BS.
4. The fact that his deal is essentially ALL CASH, would indicate the investors have ZERO faith in Timmy's ability to make AOL a success. If they did, they'd have done a cash-stock sale, betting on the future with Timmy.
5. Ariana did this deal to get her hit of cash and to take care of her investors. Not bad getting $315M back on a total investment of $37M in less than five years. Ariana will be out of AOL by this time next year.
6. Armstrong will be gone by Christmas. HuffPo is not going to somehow be the key to content issues and certainly not revenue goals.http://www.businessinsider.com/c/4d5043bacadcbb8140060000AdGuyMon, 07 Feb 2011 14:10:50 -0500http://www.businessinsider.com/c/4d5043bacadcbb8140060000
Your parents are idiots. I hope for your sake that the apple did fall far from the tree.http://www.businessinsider.com/c/4d504383cadcbbdb3f0d0000rightMon, 07 Feb 2011 14:09:55 -0500http://www.businessinsider.com/c/4d504383cadcbbdb3f0d0000
To quote a genuine journalist who speaks the truth-Alex Jones:
AOL and Huffington Team Up To Provide A Perfect Blend Of Sanitized News Content And Celebrity Gossip Slop
AOL, a dying offloaded subsidiary of Time Warner, a company that still relies on dial up internet for a vast portion of its revenue, has decided that the only way it can stay relevant is to buy an “alternative” media outlet, namely the Huffington Post.http://www.businessinsider.com/c/4d50426fcadcbb1140010000AdGuyMon, 07 Feb 2011 14:05:19 -0500http://www.businessinsider.com/c/4d50426fcadcbb1140010000
Noticed? I suppose the world is as you see it...http://www.businessinsider.com/c/4d504240ccd1d5eb17020000peter wMon, 07 Feb 2011 14:04:32 -0500http://www.businessinsider.com/c/4d504240ccd1d5eb17020000
I've been trying to get my parents to drop their AOL email address, and stop paying AOL the monthly fee...but they just don't like change and have refused to leave AOL. This morning my mother called me and asked me to help her and my father change their email address to Yahoo. She and my father won't let a penny of their money go to Ariana Huffington and he left wing politics.
Thanks, Tim! My parents just saved $20 per month!http://www.businessinsider.com/c/4d503e0749e2ae8377100000mlambMon, 07 Feb 2011 13:46:31 -0500http://www.businessinsider.com/c/4d503e0749e2ae8377100000
Engadget, yes. Forgot that AOL owned them for a minute. I guess the point I am trying to make is that AOL has done nothing but buy existing companies - they themselves haven't actually created much of anything with in the past 10 years. Given their track record for integrating acquisitions, I am inclined to say that this won't work.http://www.businessinsider.com/c/4d503b1b4bd7c8d506010000Jay YarowMon, 07 Feb 2011 13:34:03 -0500http://www.businessinsider.com/c/4d503b1b4bd7c8d506010000
Any of your friends read TechCrunch? Engadget? If so then they "use" AOL.http://www.businessinsider.com/c/4d503ad84bd7c8d306010000Huntley BrinkleyMon, 07 Feb 2011 13:32:56 -0500http://www.businessinsider.com/c/4d503ad84bd7c8d306010000
AOL owns a lot of small/medium properties, but I'm not sure how they pull them all together... Do they go for an umbrella brand (AOL doesn't have much value there and Huff Post is too polarizing) or just leave it as a loose collection of random sites?
For leverage, you'd think they'd want to integrate them all some how, but it still feels like there's a major component missing for that strategy to work.http://www.businessinsider.com/c/4d503a324bd7c88404090000etomidateMon, 07 Feb 2011 13:30:10 -0500http://www.businessinsider.com/c/4d503a324bd7c88404090000
Armstrong and Huffington were on CNBC. When asked about risks to buyout, Armstrong stated that there "isn't any risk". Really? Every buyout or merger has risks.http://www.businessinsider.com/c/4d50393cccd1d55515120000MagisterMon, 07 Feb 2011 13:26:04 -0500http://www.businessinsider.com/c/4d50393cccd1d55515120000
You don't have to use AOL. They bought the Huffington Post and there were just a handful of shareholders in the HuffPo site, who made out like bandits and it's the AOL shareholders who could be left holding the bag.http://www.businessinsider.com/c/4d5035f34bd7c88f7e060000mlambMon, 07 Feb 2011 13:12:03 -0500http://www.businessinsider.com/c/4d5035f34bd7c88f7e060000
AOL is beyond irrelevant. I don't know what Arianna's long-term "vision" is, but merging with AOL dooms HuffPo. Not saying that it was a bad deal for shareholders - I'm saying that she is cashing out while she still can.
I am 26 year old professional - I get all my news from the internet, own a smartphone, use social networking sites, and consider myself generally savvy when it comes to tech. All of my friends fall into that same category. None of them use AOL.http://www.businessinsider.com/c/4d502c46ccd1d5c8120a0000EnoughIsEnoughMon, 07 Feb 2011 12:30:46 -0500http://www.businessinsider.com/c/4d502c46ccd1d5c8120a0000
I disagree. If HP lost readers it was those on the FAR Left. Just one example: When Keith Olbermann was fired/quit/forced out or whatever there were over 38,000 comments and 98% were in favor of Keith. If HP loses readers it will be the liberal and left-leaning readers. In fact, HP seems to have lost readers over the past year for the more conservative leaning. If you read the comments since this merger was announced, most of the comments are negative because the readers sense an even further leaning to the right.http://www.businessinsider.com/c/4d502be249e2ae0b57020000djMon, 07 Feb 2011 12:29:06 -0500http://www.businessinsider.com/c/4d502be249e2ae0b57020000
.....I'm sure Henry is doing a happy dance....but it's still sad that BI can't even be on top of AAPL story today....maybe it's me? but has BI lost it's way?http://www.businessinsider.com/c/4d5029a9ccd1d5f5110b0000WindsorMon, 07 Feb 2011 12:19:37 -0500http://www.businessinsider.com/c/4d5029a9ccd1d5f5110b0000
I notice no destruction in Engadget, a killer site. AOL bought it 5 years ago.http://www.businessinsider.com/c/4d502928ccd1d51412020000WindsorMon, 07 Feb 2011 12:17:28 -0500http://www.businessinsider.com/c/4d502928ccd1d51412020000
So the most visited news site in the country is going to hurt AOL? What are you smoking? The left or center left is not as loud as the right, but believe me, there are a big segment of the population especially with the younger demographics. HP has done a great job of attracting that group, a key advertising sector.
As for AOL, it owns Endgadget, moviefone, mapquest, autoblog, tech crunch, so this moves fits right in with the content story.http://www.businessinsider.com/c/4d50290accd1d586111d0000mehitableMon, 07 Feb 2011 12:16:58 -0500http://www.businessinsider.com/c/4d50290accd1d586111d0000
Incredibly S T U P I D move by AOL. It never pays off to pay so much money for a damn website. Doesn't AOL ever learn? This is going to blow up in their faces as the OVERWHELMING MAJORITY of HP posters can't stand AOL and are afraid of a right wing take over. Just look at the comments on HP that the moderators are allowing to get through (which is maybe half? - heavy, heavy moderation on comments about this). I can understand Arianna taking the money, but the site is going to go to hell and lots of posters will leave. Arianna, stop trying to play that this is a good move for HuffPo -we aren't buying it. I understand you took the money, but stop trying to be a virgin whore. When you get paid for the job, you're a professional. Bottom line: WE DON'T NEED ANY MORE CONSOLIDATION OF MEDIA. ENOUGH ALREADY!!!!!!http://www.businessinsider.com/c/4d5028cc49e2ae4b4f030000Multimillionaire Lavada Mon, 07 Feb 2011 12:15:55 -0500http://www.businessinsider.com/c/4d5028cc49e2ae4b4f030000
Tim's duty is absolutely to conserve cash. He is being paid to extract value and growth for shareholders and not to gamble away.
Henry, You are smart and you know this. Would you have recommended Huffpo over a 1000 other things out there?
would you honestly?
This is so polarising and the blog cannot grow much, so they are in my view buying it at highest valuation. That means only one thing, they risk losing traffic more than growing it.
Now tell me Henry, where is the growth for 300M shareholders just spent?. Can huffpo return a decent 6%?
dont think sohttp://www.businessinsider.com/c/4d50283eccd1d53d11250000bobdobsonMon, 07 Feb 2011 12:13:34 -0500http://www.businessinsider.com/c/4d50283eccd1d53d11250000
Well, when FOX and affiliates/contributors have the right-wing propaganda bull***t market cornered - and it's the dominant pseudo-news entertainment network in the country - what's left but the table scraps of leftism?http://www.businessinsider.com/c/4d5027a249e2ae68470b0000Henry BlodgetMon, 07 Feb 2011 12:10:58 -0500http://www.businessinsider.com/c/4d5027a249e2ae68470b0000
So what's Tim's "duty" then? Wind down the company and distribute the cash? If it is, he should just do that.
Because if he's not willing to make bets like this, the company will gradually disappear.
Tim has been clear about his intentions. If shareholders don't like that vision, they should sell their stock and take their cash.http://www.businessinsider.com/c/4d50279d49e2ae034e080000Stebin McSorbuckMon, 07 Feb 2011 12:10:52 -0500http://www.businessinsider.com/c/4d50279d49e2ae034e080000
TA spent his first week on the job partying with P-Diddy. He closed this deal at the Super Bowl. Folk - this is just a dude who loves making deals and feeling like a player. He could not give a rats a$$ about this company. Which, actually, puts him in the same camp and every one else who's ever worked there.
Oh, Ms. Huffington - Gerald Levin is on line 2, he wants to talk to you about "super-charging" your company. How can you lose?http://www.businessinsider.com/c/4d50279449e2ae60470a0000BearcatMon, 07 Feb 2011 12:10:44 -0500http://www.businessinsider.com/c/4d50279449e2ae60470a0000
I hope they don't change HP. Where else will I get my daily Sarah Palin stalking report. Or read articles like "12 Things Women Are doing with Their Vaginas"?http://www.businessinsider.com/c/4d502713ccd1d53311160000Multimillionaire Lavada Mon, 07 Feb 2011 12:08:35 -0500http://www.businessinsider.com/c/4d502713ccd1d53311160000
This is a insanely dumb acquisition. This screams of " P A N I C " in pacific blvd dulles.
This makes Tim one half dumb of Falco who spent 800m on that BEBO crap.
who are your advisors and where is that thing they talk about? fiduciary responsibility?. Tim dont you see that Huffo guys are unloading their liberal blog because they are fast becoming out of popularity among US political demographics?.
300M you could have bought two sports team like Liverpool or a 15% stake in fast food joint like Wendys/Arbys.http://www.businessinsider.com/c/4d50269bccd1d544110f0000Henry BlodgetMon, 07 Feb 2011 12:06:35 -0500http://www.businessinsider.com/c/4d50269bccd1d544110f0000
Yes, this is a key risk, one AOL will have to think through carefully.http://www.businessinsider.com/c/4d5026614bd7c86b6b030000AdGuyMon, 07 Feb 2011 12:05:36 -0500http://www.businessinsider.com/c/4d5026614bd7c86b6b030000
It will fail. Huff post and Tech Crunch are last years sites. They're not going to be relevant in a years time... just like Aol.http://www.businessinsider.com/c/4d50262a4bd7c8835f490000ObamaMon, 07 Feb 2011 12:04:42 -0500http://www.businessinsider.com/c/4d50262a4bd7c8835f490000
Huge blunder for aol. This Armstrong guy is going to bankrupt them.
And he has that robot look. A gay robot look too.http://www.businessinsider.com/c/4d5025a149e2ae0b48050000etomidateMon, 07 Feb 2011 12:02:24 -0500http://www.businessinsider.com/c/4d5025a149e2ae0b48050000
Henry, I've been following Huffington Post since it began (Alley Insider, also). I followed HP because it was new, fresh, and writers took risk. Will that continue under AOL? Unlikely. I read TechCrunch, and you know that many of its writers will be gone after a year. Think about this when you decide to sell Business Insider to someone else. You will make a lot of money and many followers will eventually fade away to another independent.http://www.businessinsider.com/c/4d5025354bd7c8c969090000Why So Much Cash?Mon, 07 Feb 2011 12:00:37 -0500http://www.businessinsider.com/c/4d5025354bd7c8c969090000
Arianna is quite the dealmaker! She got almost all cash! Who gives cash in an acquisition? I'm impressed!
I guess AOL doesn't think its stock is UNDERVALUED! Hahahaha.....http://www.businessinsider.com/c/4d502513cadcbb6f190b0000Dead DonkeyMon, 07 Feb 2011 12:00:03 -0500http://www.businessinsider.com/c/4d502513cadcbb6f190b0000
Yes, kudos to AOL. Now please, AOL, buy the Business Insider too. Henry would to be in the big money game. You can keep Joe as the company gimp, as a sweetener.
Dream on BI. Zero Hedge is what you want to model. Content here kinda sucks. Model is easy to copy.http://www.businessinsider.com/c/4d5024d6ccd1d5f410070000dasdasMon, 07 Feb 2011 11:59:02 -0500http://www.businessinsider.com/c/4d5024d6ccd1d5f410070000
So now we learn that AOL wants to get into the left-wing propaganda distribution business. Who knew?
Instantly, AOL will have zero credibility (just like Huffington Post).
Can MSNBC be their next acquisition target? Maybe they can corner the market on bull.http://www.businessinsider.com/c/4d5024584bd7c8da66200000bloodwormMon, 07 Feb 2011 11:56:56 -0500http://www.businessinsider.com/c/4d5024584bd7c8da66200000
"What could go wrong with this deal?"
People could decide to visit OTHER sites to read and discuss the news/politics. The future competition is always a "click" away.
Huff was smart to get some cash while the getting is good. The Huff site was going bonkers during the Obama campaign and I think the site lost some of its meaning after he turned out to be just like all the other politicians.
Sure they still get alot of hits, but so did many other long-gone sites in the past.